Bitcoin, Ethereum Technical Analysis: BTC, ETH Lower on Saturday, as Bears Reenter the Market
Bearish sentiment returned to cryptocurrency markets on Saturday, as bitcoin was once again in the red. The world’s largest token moved lower to start the weekend, following yesterday’s surge towards $20,000. Ethereum was also down today, falling below $1,300 in the process.
Bitcoin (BTC) was in the red to start the weekend, as bearish sentiment returned to cryptocurrency markets.
BTC was higher on Friday, as market uncertainty eased, following the latest U.S. inflation report, however it seems as though this turbulence has returned this weekend.
As a result, BTC/USD fell to an intraday low of $19,076.63 earlier in the day, less than a 24 hours after hitting a peak of $19,821.40.
Looking at the chart, the drop in price has pushed the 10-day (red) moving average (MA) close to an imminent downward crossover with its 25-day (blue) counterpart.
In addition to this, the 14-day relative strength index (RSI) is now back below the 50.00 mark, after failing to move past its ceiling of 55.00.
Should this momentum continue to decline, we could see prices heading towards a floor of $18,600.
Like bitcoin, ethereum (ETH) was also trading lower to start the weekend, with prices of the token falling below $1,300.
Following a move above its $1,330 ceiling on Friday, ETH/USD moved to a low of $1,280.18 earlier in today’s session.
The drop sees the world’s second largest cryptocurrency hovering slightly above its floor of $1,275, which was last broken on Thursday.
On that day, the token dropped to a bottom of $1,190, however following the release of the U.S. inflation report, prices somewhat rebounded.
However, this rebound has been short lived, with the RSI also falling back towards a floor of 38.00.
Should price strength decline beyond this point, we could potentially see ethereum once again fall below $1,200.
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What do you believe has led to bears reentering the market this weekend? Leave your thoughts in the comments below.